Without the NCAA Tournament to fall back on, Virginia sportsbook operators experienced a decline in handle across April. The Commonwealth saw an 11% drop in the amount wagered, down to $563.5 million.
Despite that, all was not lost.
Online and retail sports betting operators produced a 10.8% hold during the month according to the Virginia Lottery, up from 7.5% the previous month. That equaled $60.6 million in gross revenue.
It marked the biggest return for Virginia sportsbooks since January’s 11.4% hold.
What does it mean for the operators moving forward? Here’s a closer look at Virginia’s sports betting outlook.
Gain Over 2023
Despite the drop in handle last month, Virginia sportsbooks continue to see year-over-year gains. Activity was up 32.3% compared to April 2023, a significant jump considering the growth in competition throughout the industry. Gross revenue was also up, rising by almost 35% from last year.
It’s no surprise, as interest in sports remains high throughout Virginia. The state is home to several college sports. Virginia and Virginia Tech both have strong followings in football and basketball, along with Group of Five schools such as George Mason, James Madison, Liberty, and Virginia Commonwealth. The state is also close in proximity to several professional teams, including the Washington Commanders, making it a strong location for NFL betting.
U.S. States such as Virginia, Ohio and Vermont have already banned NCAA player picks and parlays over concerns about athletes and coaches being harassed because of betting. It remains to be seen if more action will be taken in the future.
Brick-and-Mortar Locations See Drop
More than a half-dozen sportsbooks have made their way into the Commonwealth since Virginia sports betting was legalized in January 2021. DraftKings, FanDuel, bet365, BetMGM, and Caesars are among the most widely used operators. The state also is home to three brick-and-mortar casinos: Rivers Casino in Portsmouth, Caesars Virginia in Danville, and Hard Rock Bristol Casino.
Those locations generated $60.1 million in adjusted gross revenue in April, $5 million less than the previous month. Rivers Casino was the biggest producer, earning $26.4 million. Caesars Virginia earned $19.7 million, followed by Hard Rock Bristol at $13.9 million.
Slots and table games accounted for more than $60 million of those earnings. Casinos paid out $10.8 million in taxes, down from $11.7 million in March.
Contrary to neighboring West Virginia, Virginia still doesn’t allow online casino gaming. Although legalization is expected to grow within the next year because of its reputation as a strong revenue source, critics still worry about its impact on problem gambling.
This form of gambling allows players to play many of their favorite games on the best sports betting apps, such as video poker, blackjack, roulette, and dozens of different slots. It is widely seen as a more serious form of gambling, which has fueled concerns about it feeding addictive behaviors.
Only a handful of states have legalized it, including Connecticut, Delaware, Michigan, Pennsylvania, and West Virginia.
For Virginia sports betting news, odds, analysis, and more, visit Point Spreads Sports Magazine.